Wholesale prices were flat in July, below expectations for 0.2% increase

Wholesale costs for goods and services were flat in July, the Bureau of Labor Statistics reported Thursday in the latest positive sign for inflation.

The producer price index , a measure of underlying inflation pressures, was unchanged for the month, below the 0.2% Dow Jones consensus estimate and after falling 0.1% in June. The June figure was revised from a previously reported decline of 0.3%.

Excluding food and energy, core PPI rose 0.2%, against the forecast for a 0.3% gain. Core PPI excluding trade services increased 0.4%.

On an annual basis, headline PPI increased 4.7% for the all-items index and 4.2% for core, according to unadjusted figures.

The report follows several other indicators telling a similar story – that after a ramp up in inflation earlier this year fueled by the Iran war and President Donald Trump's tariffs, the rate of price increases is beginning to ease.

Stock market futures were positive after the report while Treasury yields were lower. Traders further lowered the odds for a September rate hike from the Federal Reserve.

"Net, net, pipeline pressures at the lower stages of production are not adding to the inflation risks the consumer faces," said Chris Rupkey, chief economist at Fwdbonds. "It counts as good news that for a second consecutive month, PPI final demand prices have not gone up adding to the cost of living crisis faced by Americans."

Services prices rose 0.2% for the month, pushed by a 6.5% surge in portfolio management, a category that can show outsized gains in the first month of the quarter due to reporting requirements.